IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Corruption, growth and ethnic fractionalization: a theoretical model

  • Roy Cerqueti
  • Raffaella Coppier
  • Gustavo Piga


This paper analyzes the existing relationship between ethnic fractionalization, corruption and the growth rate of a country. We provide a simple theoretical model. We show that a nonlinear relationship between fractionalization and corruption exists: corruption is high in homogeneous or very fragmented countries, but low where fractionalization is intermediate. In fact, when ethnic diversity is intermediate, constituencies act as a check and balance device to limit ethnically-based corruption. Consequently, the relationship between fractionalization and growth rate is also non-linear: growth is high in the middle range of ethnic diversity, low in homogeneous or very fragmented countries.

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 106 (2012)
Issue (Month): 2 (June)
Pages: 153-181

in new window

Handle: RePEc:kap:jeczfn:v:106:y:2012:i:2:p:153-181
Contact details of provider: Web page:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Keith Blackburn & Niloy Bose & M. Emranul Haque, 2010. "Endogenous corruption in economic development," Journal of Economic Studies, Emerald Group Publishing, vol. 37(1), pages 4-25, January.
  2. Mikhail Drugov, 2007. "Competition in Bureaucracy and Corruption," Economics Series Working Papers 369, University of Oxford, Department of Economics.
  3. Benchekroun, Hassan & Withagen, Cees, 2011. "The optimal depletion of exhaustible resources: A complete characterization," Resource and Energy Economics, Elsevier, vol. 33(3), pages 612-636, September.
  4. Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June.
  5. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
  6. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 127-166, 04.
  7. Sambit Bhattacharyya & Roland Hodler, 2008. "Natural Resources, Democracy and Corruption," OxCarre Working Papers 020, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  8. Thomas P. Tanger�s & Nils-Petter Lagerlöf, 2009. "Ethnic Diversity, Civil War and Redistribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 1-27, 03.
  9. Hongyi Li & Lixin Colin Xu & Heng-fu Zou, 2000. "Corruption, Income Distribution, and Growth," Economics and Politics, Wiley Blackwell, vol. 12(2), pages 155-182, 07.
  10. Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank.
  11. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1027-1056.
  12. Dobson, Stephen & Ramlogan-Dobson, Carlyn, 2010. "Is there a trade-off between income inequality and corruption? Evidence from Latin America," Economics Letters, Elsevier, vol. 107(2), pages 102-104, May.
  13. Evrensel, Ayse Y., 2010. "Corruption, growth, and growth volatility," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 501-514, June.
  14. Raouf, BOUCEKKINE & José R. , RUIZ-TAMARIT, 2004. "Special functions for the study of economic dynamics : The case of the Lucas-Uzawa model," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004026, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  15. Rauf, BOUCEKKINE & Blanca, MARTINEZ & Jose R., RUIZ-TAMARIT, 2007. "Global dynamics and imbalance effects in the Lucas Uzawa model : further results," Discussion Papers (ECON - Département des Sciences Economiques) 2007018, Université catholique de Louvain, Département des Sciences Economiques.
  16. Acemoglu, D. & Verdier, T., 1997. "The Choice between Market Failures and Corruption," DELTA Working Papers 97-06, DELTA (Ecole normale supérieure).
  17. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
  18. Seung Yoo, 2008. "Petty corruption," Economic Theory, Springer, vol. 37(2), pages 267-280, November.
  19. Corneo, Giacomo, 2010. "Nationalism, cognitive ability, and interpersonal relations," Discussion Papers 2010/5, Free University Berlin, School of Business & Economics.
  20. Pedro C. Vicente, 2007. "Does Oil Corrupt? Evidence from a Natural Experiment in West Africa," Economics Series Working Papers 317, University of Oxford, Department of Economics.
  21. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
  22. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
  23. Svensson, Jakob, 1998. "Foreign aid and rent-seeking," Policy Research Working Paper Series 1880, The World Bank.
  24. Javier Ortega & Thomas P. Tangerås, 2008. "Unilingual Versus Bilingual Education: A Political Economy Analysis," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1078-1108, 09.
  25. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
  26. Haezendonck, J. & Goovaerts, M., 1982. "A new premium calculation principle based on Orlicz norms," Insurance: Mathematics and Economics, Elsevier, vol. 1(1), pages 41-53, January.
  27. Goovaerts, Marc J. & Kaas, Rob & Dhaene, Jan & Tang, Qihe, 2004. "Some new classes of consistent risk measures," Insurance: Mathematics and Economics, Elsevier, vol. 34(3), pages 505-516, June.
  28. Acemoglu, Daron & Verdier, Thierry, 1996. "Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach," CEPR Discussion Papers 1494, C.E.P.R. Discussion Papers.
  29. Rose-Ackerman,Susan, 1999. "Corruption and Government," Cambridge Books, Cambridge University Press, number 9780521659123.
  30. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1243-1284.
  31. Bellini, Fabio & Rosazza Gianin, Emanuela, 2008. "On Haezendonck risk measures," Journal of Banking & Finance, Elsevier, vol. 32(6), pages 986-994, June.
  32. Rose-Ackerman,Susan, 1999. "Corruption and Government," Cambridge Books, Cambridge University Press, number 9780521632935.
  33. Jacob Wanjala Musila & Simon Pierre Sigué, 2010. "Corruption and International Trade: An Empirical Investigation of African Countries," The World Economy, Wiley Blackwell, vol. 33(1), pages 129-146, 01.
  34. Lessmann, Christian & Markwardt, Gunther, 2010. "One Size Fits All? Decentralization, Corruption, and the Monitoring of Bureaucrats," World Development, Elsevier, vol. 38(4), pages 631-646, April.
  35. Schmidt, Klaus D., 1989. "Positive homogeneity and multiplicativity of premium principles on positive risks," Insurance: Mathematics and Economics, Elsevier, vol. 8(4), pages 315-319, December.
  36. repec:cor:louvrp:-2091 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:kap:jeczfn:v:106:y:2012:i:2:p:153-181. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.